Metalic Technoforge IPO Sees Measured Debut as Components Maker Raises ₹50 Crore in Maiden Public Offering

Metalic Technoforge IPO Sees Measured Debut as Components Maker Raises ₹50 Crore in Maiden Public Offering​

Metalic Technoforge, a Gujarat-based manufacturer specializing in precision machined and closed die forged components, saw its maiden public issue attract 33 percent of interest on the first day of bidding (July 21). The company is utilizing this capital raise to fund significant manufacturing expansions and unit upgradations.

The IPO was conducted by Smart Horizon Capital Advisors, and investors sought to place bids for 15.39 lakh equity shares against an overall offer size of 46.48 lakh shares. The bidding process included Non-institutional (NI) and Retail investors as participants.

##Subscription Status and Investor Response

The response across participant categories showed variation during the initial phase. NI and retail investors demonstrated interest, with their respective quotas receiving bids of 59 percent and 29 percent. Qualified institutional buyers (QIBs) have not placed any bids yet in the ongoing public offering.

Metalic Technoforge is approaching the capital markets to raise Rs 50 crore through this IPO. The offering consists of 64.88 lakh shares, with the price band set between Rs 72 and Rs 77 per share at the upper end. The subscription window for the public issue remains open until July 23.

##Company Operations and Market Focus

Incorporated in 2016, Metalic Technoforge specializes in producing critical components such as gears, ball studs, rings, coupling assemblies, and other precise parts. These products are essential for Original Equipment Manufacturers (OEMs).

The company's market reach is broad, serving both automotive industries and non-automotive sectors including agricultural machinery, hydraulic systems, construction equipment, and general engineering products.

##Financial Utilization of IPO Proceeds

A portion of the net IPO proceeds has already been mobilized prior to the public issue launch. On July 20, Metalic Technoforge successfully raised Rs 14.16 crore by issuing shares to seven anchor investors. These anchors include Aarth AIF Growth Fund and Tiger Strategies Fund.

The utilization plan for the IPO proceeds is detailed. Of the funds raised, a significant amount of Rs 30.8 crore is designated for setting up Manufacturing Unit IV. This fund will also be used for upgradation of existing units at their Rajkot manufacturing facility.

##Operational Structure and Unit Specialization

The company manages its production through three distinct operational units. Unit I focuses on forging, heat treatment, shot blasting, and crucial quality control procedures.

Unit II is equipped with advanced machining shop facilities, dedicated storage areas for finished products, and a dispatch section. Meanwhile, Unit III serves the functions of raw material storage, die manufacturing, and maintaining the tooling shop.